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Firm stops ex-employees using its confidential information

Posted: 16th October 2013   In: Business Employment

A publishing company has been granted an injunction preventing former employees from using its confidential information including its customer databases.

The issue arose when three of the company’s senior employees resigned to set up a rival business.

The company suspected that the employees had set up their new enterprise before resigning. It then alleged that the employees had solicited its clients, used its LinkedIn accounts to further their own business and misused confidential information including customer databases. They had also removed a large number of customer business cards.

The company said the employees had acted in breach of their employment contracts and duty of good faith.

The court held that the employees owed the company duties of fidelity and good faith. There was a strong case that the databases contained confidential information and that the employees had been working on their new business while they were still the company’s employees.

There was also a strong case that the business cards provided them with a competitive advantage.

The company had a good chance of winning its case and should therefore be granted an interim injunction preventing the former employees using the company’s confidential information. The issues could then be considered again in more detail at a full trial hearing.

Please contact Jackie Cuneen on 01582 514000 if you would like more information about the issues raised in this article or any legal matter relating to protecting your business interests.